Jefferies Maintains Buy on Prestige Estates Projects, Cuts Target Price from ₹1,850 to ₹1,635 Citing Middle East Conflict Impact

Jefferies Trims Prestige Estates Target on Geopolitical Slowdown, Maintains Conviction

Jefferies maintained its Buy rating on Prestige Estates Projects while cutting the target price from ₹1,850 to ₹1,635, reflecting the impact of the Middle East conflict on Q1FY27 home-buying decisions and a significant reduction in FY27 pre-sales growth forecast to approximately 6% YoY from 21% in FY26.

Record FY26 Foundation

The price cut arrives as Prestige Estates Projects Limited reported landmark FY26 performance with annual pre-sales reaching ₹30,024 crore, up 76% year-on-year, marking the first time the company crossed the ₹30,000 crore milestone. Q4 pre-sales reached ₹7,697 crore with 10% growth, driven by sustained demand across key markets including Bengaluru, NCR, Mumbai, Hyderabad, and Chennai.

Near-Term Demand Headwinds

Jefferies highlighted that the ongoing Middle East conflict is expected to slow home-buying decisions during Q1FY27. The brokerage's moderated growth outlook signals a period of consolidation after the exceptional run in FY26. Jefferies noted that interest rates and capitalization rates have increased by 50 basis points, creating additional headwinds for the real estate sector.

However, Jefferies believes the sharp valuation correction in the stock limits further downside risk, which supports the maintained Buy rating even as the target price has been adjusted lower to reflect current market realities.

About Prestige Estates Projects

The company was founded in 1986 and is based in Bengaluru, India, and is a subsidiary of Razack Family Trust. The Company has delivered approximately 300 real estate projects spanning 180 million square feet, with residential product lines comprising townships, apartments, mansions, luxury villas, row houses, plotted development, golf projects and affordable housing.

Prestige holds the prestigious CRISIL DA1+ grading—the highest rating any real estate developer can achieve in India. The 85-90% on-time delivery rate significantly outperforms the 50% industry average, and their track record of zero financial-related project abandonments provides crucial peace of mind.

With a legacy of almost four decades, the Group has delivered 313 projects spanning 206 million square feet and currently maintains a pipeline of 128 projects across 195 million square feet. The company operates across Bangalore, Chennai, Kochi, Calicut, Hyderabad, Mumbai, Mangalore, Goa and Delhi-NCR.